https://www.taxtmi.com/caselaws?id=771284 ITAT Chandigarh allowed the assessee's claim for deduction of bad debts written off as irrecoverable advance under section 37(1) read with section 28. The AO had disallowed the deduction citing absence of formal agreement, PAN details, and TDS records. The tribunal found the advance was a genuine business expense, properly recorded in accounts for years without Revenue questioning its correctness. Following TRF Ltd. SC precedent, once an amount is written off as irrecoverable, no further documentation is required. The CIT(A)'s order was overturned, and the deduction was allowed. en-us Thu, 01 May 2025 00:00:00 +0530 Fri, 23 May 2025 08:46:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=771284 ITAT Chandigarh allowed the assessee's claim for deduction of bad debts written off as irrecoverable advance under section 37(1) read with section 28. The AO had disallowed the deduction citing absence of formal agreement, PAN details, and TDS records. The tribunal found the advance was a genuine business expense, properly recorded in accounts for years without Revenue questioning its correctness. Following TRF Ltd. SC precedent, once an amount is written off as irrecoverable, no further documentation is required. The CIT(A)'s order was overturned, and the deduction was allowed. Case-Laws Income Tax Thu, 01 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=771284